This paper studies the impacts of the 2018 U.S. tariff surges on export prices and adjustments of sales across different markets of Chinese exporters. The finding that U.S. tariffs did not affect the free-on-board price of Chinese exports is robust to controlling for firm-related fixed effects. While firms’ exports to the United States dropped significantly, exports to the EU increased moderately and domestic sales or exports to other foreign markets were barely affected. Finally, by surveying managers of exporting firms, we shed light on potential impediments to firms’ adjustments of export prices and sales.

© 2022 The President and Fellows of Harvard College and the Massachusetts Institute of Technology
2023
The President and Fellows of Harvard College and the Massachusetts Institute of Technology

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